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[emoji848] What % Should I Give Someone Investing In My Campaign And/Or CPA Business (11)

10-23-2019 07:44 AM #1 harvcam (Member)
What % Should I Give Someone Investing In My Campaign And/Or CPA Business

Apologies -, I posted this previously in Tips, as I wanted a tip! Completely misunderstood, so I have re-posted here. Hope that is correct.

I am still a newbie just coming through the research, signing-up to setting up stage and carving out time to dedicate to CPA marketing part-time until I can focus on it full-time.

But although I’m new to this I’ve had a pretty successful career so far in Advertising/Media and there is therefore some interest from 2 people in investing (in one way or another) in my CPA business.

So my questions to the wonderful experts on STM, because this seems to be different to other businesses I have owned, as in I won’t want or need investment to scale until the campaign is showing some success, are:

1. What % should I offer in return for an investment?

2. Should I suggest the investments are made in the business as a whole or in a campaign?

I know you may think I am trying to run before I can walk but I’m the type of person who likes to get his ducks in a row, plans in place and never give up. And I think these are important questions that others may have now or in the future.

Many thanks for taking the time to read and answer this




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11-09-2019 02:52 PM #2 harvcam (Member)

Bit disappointed I haven’t received a reply - maybe it should just be the standard 50/50 split on profits?


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11-09-2019 02:59 PM #3 nickpeplow (AMC Alumnus)

I think you shouldn’t take investment. Save up and go in with your own money, hustling on this affiliate stuff in the evening.

You’ll want to own the whole company and paying out any % will be painful. Especially down the line if anything did become profitable. Would suck to pay a dividend if the company is cash flow positive, regardless of what happened initially to get there.

Affiliate marketing is f***ing hard at the moment. For every guru on Instagram, there are 100 affiliates making nothing or losing it all. I think it’s a much much wiser investment for your investors to put their money on red three times in a row.

It should not take much cash to get started, just a few thousand and a credit card to scale anything profitable. If you’ve got investor cash in your pocket, it might be easy to overspend “buying data” deeper into an unprofitable hole.


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11-09-2019 04:55 PM #4 harvcam (Member)

Quote Originally Posted by nickpeplow View Post
I think you shouldn’t take investment. Save up and go in with your own money, hustling on this affiliate stuff in the evening.

You’ll want to own the whole company and paying out any % will be painful. Especially down the line if anything did become profitable. Would suck to pay a dividend if the company is cash flow positive, regardless of what happened initially to get there.

Affiliate marketing is f***ing hard at the moment. For every guru on Instagram, there are 100 affiliates making nothing or losing it all. I think it’s a much much wiser investment for your investors to put their money on red three times in a row.

It should not take much cash to get started, just a few thousand and a credit card to scale anything profitable. If you’ve got investor cash in your pocket, it might be easy to overspend “buying data” deeper into an unprofitable hole.


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Very interesting. Thanks


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11-09-2019 07:31 PM #5 iAmAttila (Veteran Member)

70%

campaigns these days are few and far in between, it takes a lot of money to find a winner, even if you work hard and test a lot, the truth is not what gurus selling courses tell you
it's hard, and to top it off you often get insta banned on facebook on ad upload way before you can even THINK about turning on a cloaker

11-10-2019 01:07 PM #6 harvcam (Member)

Quote Originally Posted by iAmAttila View Post
70%

campaigns these days are few and far in between, it takes a lot of money to find a winner, even if you work hard and test a lot, the truth is not what gurus selling courses tell you
it's hard, and to top it off you often get insta banned on facebook on ad upload way before you can even THINK about turning on a cloaker
Thanks.. so you think I should offer 70% to the investor for clarification?


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11-11-2019 11:36 PM #7 maynzie (Moderator)

I agree with Nick that you can get affiliate marketing working with not a lot of capital in the beginning, no point bringing on someone unless you need the cashflow when its ready to scale up. I imagine its a weird and difficult thing to manage offering investment in a media buying game as this stuff moves so fast heavily profitable some days and wiped out the next etc

11-12-2019 08:53 AM #8 harvcam (Member)
🤔 What % Should I Give Someone Investing In My Campaign And/Or CPA Business

Quote Originally Posted by maynzie View Post
I agree with Nick that you can get affiliate marketing working with not a lot of capital in the beginning, no point bringing on someone unless you need the cashflow when its ready to scale up. I imagine its a weird and difficult thing to manage offering investment in a media buying game as this stuff moves so fast heavily profitable some days and wiped out the next etc
Thanks Maynzie - really appreciate the advice. Yes I was only thinking for when it’s ready to scale. I still think if I need to scale the more access to money the merrier and having some % return of money to scale that I don’t have any other access to is a good thing; apart from any extra money I could earn it could help with traffic source (running more traffic, ability to dominate) and affiliate network (bumps, more frequent payments) relationships. I was interested that if it’s going to be used to scale an already profitable campaign would 50/50 be fair or maybe as I will be doing all the work 60/40 in my favour...still unsure.


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11-12-2019 01:27 PM #9 matuloo (Legendary Moderator)

Quote Originally Posted by harvcam View Post
Thanks Maynzie - really appreciate the advice. Yes I was only thinking for when it’s ready to scale. I still think if I need to scale the more access to money the merrier and having some % return of money to scale that I don’t have any other access to is a good thing; apart from any extra money I could earn it could help with traffic source (running more traffic, ability to dominate) and affiliate network (bumps, more frequent payments) relationships. I was interested that if it’s going to be used to scale an already profitable campaign would 50/50 be fair or maybe as I will be doing all the work 60/40 in my favour...still unsure.


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The positives of dominating are overrated imo, at least based on my experience.

Now don't get me wrong, you can definitely get "priority" treatment when doing volume, but the breaking point is somewhere around high $XXX in revenue per day, as long as you can cross 4 figures a day, you will get all he attention an AM can give you. Private deals etc are also a myth to some extent... they do exist but again, the volume I mentioned is all you need to get access to whatever is on offer. So yes, playing it "big" makes sense and it gives you an edge, but it doesn't mean you need to do millions in revenue. Deliver steady volume, prove that you're a trustworthy person, meet with the networks rep at some conference in person and you're all set.

When I was beginning with paid traffic, I was afraid of facing scaling issues due to cashflow issues too, but it turned out to be a much less of a problem than I expected. The reason is simple, networks realize you need to maintain healthy cashflow and as soon as you hit some numbers, everyone will pay you weekly or even more frequently, so the cashflow issues simply go away within a few weeks or months. It literally took me about 2 months.

I agree that a small investment can make things easier at the beginning, so you don't have to hold yourself back and can start scaling straight away, so if you decide to go that route and accept investors, make sure you set the deal for a limited period of time. If all goes well, you won't need the investment in a few months, so why would you commit yourself to paying a dividend month after month forever?

Personally, I wouldn't treat this as an investment in the business, but rather a short term loan for a fixed period of time. Hard to say what rate I'd be willing to pay though, but even 50/50 with no action from their end sounds like to much. Then again, it all depends on what risks they are willing to take? What if the campaigns bomb totally and you lose the money, will they accept that? That would certainly increase the % I'd be willing to pay.

11-12-2019 11:03 PM #10 maynzie (Moderator)

When I was beginning with paid traffic, I was afraid of facing scaling issues due to cashflow issues too, but it turned out to be a much less of a problem than I expected. The reason is simple, networks realize you need to maintain healthy cashflow and as soon as you hit some numbers, everyone will pay you weekly or even more frequently, so the cashflow issues simply go away within a few weeks or months. It literally took me about 2 months.
Exactly!!!

I just think one thing you will hate man is when you have a campaign you could of floated yourself (networks pay weekly, some networks pay twice a week if volume is good - and credit cards can give you float) and you're giving away a big chunk of the profit %. This game moves very fast and you really want to maximise the profit you're taking home yourself.

11-14-2019 09:23 AM #11 harvcam (Member)

Thank you @matuloo @maynzie for such useful advice

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